If you’ve taken a look at deposit interest rates lately, you’ll notice a trend over the past two years that simply cannot be broken. It seems that each week, a litany of banks continue to lower the interest rate offered on savings, money market and CD accounts and while it would appear they can’t go any lower … they do.
The longest certificate of deposit term offered by most banks is five years and this term also offers the best interest rate. While the average interest rate on a savings account is less than 0.25% APY, a 5 year CD can offer more than 10x that paltry return. Five years is certainly a long time to tuck your money away but there’s no telling how long our economy will remain in it’s funk. Once you secure your interest rate, that is the rate you’ll receive for all five years of your investment.
Below you will find the best five year CD’s available from national, online banks. These rates change often but we always make sure to keep them accurate. This list was last updated May 2012.
Every bank you see above is FDIC insured, meaning that the money you invest is secure, up to $250,00. This means that you can invest up to $250,000 at each of the banks above, making millions of your money safe. However, investing money at different branches of the same bank does not increase your FDIC insurance limit. It’s also important to note that CD’s are labeled under the “single accounts” category so if you have an individual savings, money market and CD account, they all add up to the $250,000 limit.
Published or updated October 31, 2012.